In this year’s conversations about spending, the keyword is “caution.” With prices clearer, more options available, and longer decision-making times, the lifestyle service industry is feeling the shift. But rather than avoiding experiences, consumers are becoming choosier. They are asking themselves what value they get for their money.
In restaurants, people care less about just the food; they want comfort and great service. When traveling, it’s not just the destination that matters, but how they engage with it. In retail, low prices are becoming less attractive compared to trust, connection, and identity.
These changes suggest a move away from simply looking for the best deal. Now, the focus is on emotional value. Consumers want experiences that resonate with them. A recent report by Douyin Lifestyle Services highlights a trend called “emotional cost-performance.” As price alone loses its importance, consumers begin to invest in experiences that deliver emotional rewards.
This isn’t just a change in mindset; it’s a shift in what’s valued in spending. With tighter budgets, people prefer to spend on experiences that promise emotional returns and personal fulfillment. This is especially true in the lifestyle service industry, which is adapting accordingly.
Emotional Spending on the Rise
The Douyin report shows consumers aren’t merely cutting back; they’re reallocating their spending. Emotional value, memorable experiences, and social significance are now critical factors in spending decisions. For instance, according to an Accenture study, over half of Generation Z sees spending as a way to express themselves and connect with others. A McKinsey report from May reinforces this, indicating consumers are increasingly willing to adjust their budgets for things that enhance happiness.
Emotional value isn’t just a buzzword. It breaks down into three core ideas: atmosphere, experience, and ritual. “Atmosphere” relates to the appeal of a space. “Experience” emphasizes engaging moments, and “ritual” turns everyday activities into memorable events. This emotional triangle is becoming a focal point for users seeking meaningful connections.
Trends in Key Industries
As emotional cost-performance takes root, different sectors within the lifestyle service industry are evolving.
Catering: Dining has transformed from merely filling a hunger gap to creating a memorable experience. Consumers are looking for restaurants that offer a unique atmosphere and emotional engagement. They want meals that provide comfort and understanding, beyond just satisfying hunger. For example, brands like Longge focus on popular, emotionally engaging products that resonate with customers, such as visually appealing menu items. These products not only attract attention but aim to create a connection with diners.
Hospitality and Travel: In the hospitality and tourism sector, there’s a significant shift from simply “sightseeing” to being part of the experience. Travelers now prioritize immersive opportunities. They want to engage with the local culture or participate in unique activities. For example, Shanghai Haichang Ocean Park has turned animal interactions into emotionally charged experiences, successfully drawing in visitors while boosting repeat visits.
Retail: Traditionally driven by price, retail is now fostering a sense of identity and connection. Consumers want brands that resonate with their values and lifestyle rather than just low-cost items.
Conclusion
As emotional value takes center stage in spending, the lifestyle service industry is responding. Brands are adapting to focus not only on the product but also on the entire experience surrounding it. This deeper focus reflects a new approach to consumption: one that prioritizes emotional satisfaction over mere cost. The result is a transformation that could redefine how we engage with services and brands moving forward.
For further insights on consumer behavior trends, check out this report by McKinsey.
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emotional cost-performance, consumption decision-making, lifestyle service industry, emotional value, atmosphere, sense of experience, sense of ritual, catering industry, hospitality and tourism, general retail, centripetal evolution, Douyin Lifestyle Services, 2025 Annual Lifestyle Service Merchant Trend Report
